Senate discussion of 2452 today.

[rcsone]

This is the Federal Housing Finance Regulatory Reform Act of 2008

.....there is nothing in this bill that pertains to commercial appraisal.....and, "...(c) Duties of Appraisers-(2) BOND REQUIREMENT-No appraiser may charge, seek, or receive compensation for an appraisal unless the appraisal is covered by a qualifying bond......(e) Remedies-(1) REQUIRED MODIFICATION-if a retrospective appraisal determines that the appraisal upon which the home loan was based exceeded the true market value by 10 percent or more, the holder of the loan shall modify the loan and recast the loan ab initio to a loan amount that is at the same loan-to-value which the orginal loan purported to be. All payments made prior to the recasting of such a loan shall be applied to the reduced loan amount.....". (f) Civil liability-(1) IN GENERAL-.......appraiser....is liable to the borrower in an amount equal to the sum of--(A) any actual damages sustained by the borrower as a result of the failure. (B) an amount not less tha $5000; or (C) ....costs of the action, together with reasonable attorney's fees as determined by the court.". I still maintain this is going to pass veto proof by both Houses and that the President will declare that since taxpayers' liability has been minimized, he no longer has any objection. And this bill says,"...home mortgages..." and does not say only those federally related, ie: VA, FHA, Home Loan or GSE's.......and this bill should be almost finalized Tuesday morning by my calculation...then it goes back for joint reconcilation.........both House have already passed the majority by large percentages and I expect it will be finalized and sent for Preisential signature before the July 4th break......a motion to reconsider was defeated 90% in the Senate........just think that with the expense of AMC's cut and regular overheads plus bonding, appraisal could turn into hobby for the rich who can afford to practice gratis.........and I would add, the current AMC appraiser possession is through as is currently structured..........:new_multi:........best to all............rs

 

[Elliott]

I just don't think Dodd Bond will be an appraisal expense....it will go on the closing
statement, just like title insurance (see insurance companies get a bigger
piece of everything, just like the mafia).

 

[Karl]

http://www.azcentral.com/members/Blog/sevguest/26079

 

[Greg Bell]

So which super fantastic reviewer determines you are over 10% in value on an OPINION!!
Get , it's over.No appraiser will risk a high appraisal.Notice it states "exceeded" not WITHIN 10%.The bond will need to paid for and guess who will pay for that.If this passes most of us will be out of business.A good time to retire or look for something else..

 

[William K]

I just don't think Dodd Bond will be an appraisal expense....it will go on the closing
statement, just like title insurance (see insurance companies get a bigger
piece of everything, just like the mafia).

Not so sure about that.

"-(2) BOND REQUIREMENT-No appraiser may charge, seek, or receive compensation for an appraisal unless the appraisal is covered by a qualifying bond.... "

Seems that in order to charge for an appraisal you must have a qualifying Bond. Doesn't matter if it closes. It can't get charged at closing if it never closes. Doesn't state anything about a closed loan.

 

[rcsone]

.....if it does not close, there would be no requirement for bond........just like you do not have to insure a car you did not purchase or drive......rs

 

[PropertyEconomics]

Not so sure about that.

"-(2) BOND REQUIREMENT-No appraiser may charge, seek, or receive compensation for an appraisal unless the appraisal is covered by a qualifying bond.... "

Seems that in order to charge for an appraisal you must have a qualifying Bond. Doesn't matter if it closes. It can't get charged at closing if it never closes. Doesn't state anything about a closed loan.

The appraiser has to have the bond .. not the borrower or the buyer. Totally different from Title Insurance.
The expense is the appraisers. It may be passed on to the borrower but it wont be as a separate line item in the HUD1 .. it will be in the appraisal fee. And the appraiser will have to pay upfront for the bond as best as I can tell.

 

[Greg Bell]

IN GENERAL-.......appraiser....is liable to the borrower in an amount equal to the sum of--(Yikes...
Looks like we will need a full time lawyer on staff.I hope wal mart needs a greeter..

 

[Michigan CG]

Covered by a bond before you seek an assignment. SO that means paying for bond "coverage" before you do any work. Bond is based on last year' s amount of appraisal work.

If you did 300 residentials last year at the median home value of approximately $200,000 then you have a 1% bond amount of $600,000. If that bond costs 5% then you have a yearly cost of $30,000; $7,500 quarterly. Would the insurance company let you pay monthly...$1,875/month?

I think I did about 30 residential reports last year, so my bond cost would be only $3,000. How is that fair? 30% of my competition goes out of business because they cannot afford the initial $7,500 bond payment. I then hire trainees and make a killing......hhhmmm.

 

[PropertyEconomics]

.....if it does not close, there would be no requirement for bond........just like you do not have to insure a car you did not purchase or drive......rs

The way I read it is if you seek compensation you have to be covered. It doesnt say anything about closing of a loan .. and if I do an appraisal, whether it closes or not, I am going to seek payment.